Ottawa Plans $50 Million Investment in New Brunswick Digital Forestry Hub

The Canadian federal government plans to invest $50 million in a proposed digital forestry innovation centre in New Brunswick aimed at reducing industry costs, improving forest management and increasing wood supply.

Natural Resources Minister Tim Hodgson announced the proposed Strategic Innovation Centre in Digital Forestry on Wednesday in Fredericton. The initiative would develop a digital replica of the province’s forests, allowing foresters to simulate harvesting operations, reforestation plans and wildfire management strategies before implementing them in the field.

“Being able to do those all in a digital world first saves an immense amount of money and actually teaches you how to manage the forest better,” Hodgson said.

The centre would also introduce centralized dispatching to improve log transportation and reduce empty truck miles. New Brunswick Natural Resources Minister John Herron compared the proposed system to an “Uber in the forest,” describing its potential to improve transportation logistics.

The project is estimated to cost $86 million and is being developed through a collaboration between the Northern Hardwood Research Institute and Research New Brunswick, which sought federal funding earlier this year. Ottawa’s contribution is conditional on project approval, according to Natural Resources Canada. The remaining funding will largely come from the provincial government, Herron said.

Gaetan Pelletier, executive director of the Northern Hardwood Research Institute, estimated that the centre could help New Brunswick’s forestry industry reduce costs by approximately $25 million annually. He said greater use of technology would support job creation as the sector diversifies, rather than result in layoffs.

Forestry contributes about $1.5 billion annually to New Brunswick’s economy and supports approximately 9,700 direct jobs and 14,100 additional jobs, according to provincial government figures.

The proposed investment comes as Canada’s forestry sector faces tightening supply, higher operating costs, low pulp prices and tariffs on Canadian wood products exported to the United States. The owners of an aging pulp mill in Nackawic, New Brunswick, recently announced a temporary shutdown scheduled for Nov. 4, resulting in hundreds of layoffs.

Hodgson also confirmed that the federal Liberal government plans to announce its national forestry sector strategy when it tables a new budget next month. A Natural Resources Canada spokesperson said the strategy would include billions of dollars in funding but provided no further details.